Why cultural fit is the deciding factor for employee retention in recruiting and how to concretely assess it during the selection process.
Just a few years ago, recruiters focused exclusively on technical skills, degrees, and years of experience during the selection process. However, especially in times of skilled labor shortages, it is becoming increasingly important that employees are a good fit for the company. New hires and high turnover are time-consuming and expensive. The term "cultural fit" has become established to describe this alignment.
Literally translated, cultural fit means "cultural match." This describes the core of the concept well: the ideas and values of an employee should align with those of the company. Unlike in the past, the selection process now considers not only a candidate's background and technical expertise but also the question: Does this person’s values align with our corporate culture, our company values, and our behavioral standards?
Cultural fit is not only significant for companies. Applicants also compare the company's values with their own to see if they might be a good match. For Generations Y and Z in particular, cultural fit is a key selection criterion, sometimes even more important than financial incentives like salary. They want to identify with the company and its values and be able to stand behind them.
To do this, they research the company in advance via its career page, job portals, and social media. For example, they look at:
If interested candidates cannot find information about the company's values and culture, or if these do not align with their own expectations, the company is quickly ruled out. This brings us back to employer branding: companies use this to communicate their values and their employer value proposition to the outside world, giving applicants an inside look.
Very few people have a 100% match with a company's values. However, the better the fit, the more both sides benefit.
Motivation and satisfaction: Employees who identify with the corporate culture are generally more motivated and satisfied. They feel more comfortable in their work environment and are more productive.
Teamwork: A high cultural fit promotes team collaboration. Employees who share similar values and beliefs often work better together and resolve conflicts more effectively.
Recruitment and retention: Companies that clearly communicate their culture and values attract applicants who are a good cultural fit from the start. This leads to lower turnover and higher employee retention.
Note: A focus on cultural fit is occasionally interpreted as discriminatory, as applicants are evaluated as better or less suitable based on certain values. However, only internal values play a role, not aspects such as gender, age, origin, sexual orientation, or appearance. Therefore, cultural fit is legally sound in terms of labor law.
A few steps can help you achieve a better match with candidates.
Define company culture: A company's values and culture can only be aligned if they are clearly defined. You should take your time with this step and, ideally, involve your existing staff. Furthermore, values and culture change over time. It is therefore worth regularly reviewing your values to ensure they are still current and relevant, and adjusting them if necessary.
Communicate values and culture: Once you have a clear picture, you can communicate your values and company culture externally. The more precise and authentic you are, the better. Employer branding is particularly well-suited for this, but employees can also become active on social media themselves.
Ask the right questions: The interview or introductory meeting is all about getting to know one another. This is the ideal time to gauge a candidate's values. It is best to prepare a list of questions in advance. This allows you to ask targeted questions about their preferred team culture, how they handle challenges, or what motivates them, without missing anything. In addition, all candidates are asked the same questions, making their answers comparable.
Promote diversity: Cultural fit does not mean that all employees should be the same. Diversity in experience and perspectives also contributes to the company.
There are numerous software solutions available designed to measure or test cultural fit. These range from cultural fit tests on career pages to applicant management tools that calculate a score based on predefined criteria intended to reflect cultural fit.
Cultural fit will continue to be a key topic and will play an increasingly important role in recruiting. When employees identify with company values and culture and feel comfortable, they can reach their full potential. Companies should therefore strive to find employees with a high cultural fit to lay the foundation for long-term employee retention and business success.
At Emarket, we have developed our own method that allows companies to assess the cultural fit of talent by actively offering a culture check. Contact us and we will show you how it works.
